How to sell your home while buying a new one

There are a variety of reasons why you might be looking to sell your home. Perhaps you want to size up or size down depending on your family situation. You may even want to upgrade after a big raise or make a move due to a transfer or career change. If you are planning to sell your home, there are a few decisions you're going to have to make. For starters, do you plan to sell your home while buying a new one? You most certainly don't have to, as some buyers choose to rent out their second properties. If you do however need to sell your home while also purchasing a new one, here is everything you need to know regarding the steps of the process.

Determine the Value of Your Home

You're going to have to figure out what your current home might sell for before searching for a new one to move into. This is because being aware of what your home will likely sell for will allow you to better decide how far you can stretch your budget when looking for a new property.

Discuss Options with Your Lender

Any savvy home buyer will also discuss financial options with his or her lender prior to exploring the markets for a new one. Your lender might actually be able to provide you with tons of helpful advice when it comes to deciding how much of a mortgage you will be able to afford and whether or not you can afford to carry two mortgages at once. When making calculations, don't forget to factor in fees, taxes and insurance payments.

Research the Current Markets

Buyers who get the best deals keep up with the markets. This is because they are aware of just how long properties tend to stay on the market, allowing them to make their move at exactly the right time. Researching the markets can also give you an idea of where you might want to move, what amenities you're looking for and what all you can reasonably afford.

Prepare Your Home For Sale

Once you have established a budget, weighed your options and done your research, you should then be ready to begin preparing your home to enter the market. Make any small repairs that are needed, tidy up the exterior and interior of the home, give your walls a fresh coat of paint, stage your furniture and don't forget to have the property thoroughly cleaned. If you aren't wanting to go through all of the hassle of handling the preparation of your home, you can always hire a professional to get the job done. When the repairs and the de-cluttering are done, you might then want to have the home inspected to ensure you didn't overlook any issue that may come rearing its head later.

Start Your New Home Search

Know how much you want to spend on a new home and have already gone through the process of preparing your existing one? If so, you are now ready to begin searching for a new place. It's recommended you initially keep your search rather broad so that you can get an idea of where the markets are. You can then gradually narrow your home search once you have some kind of understanding of where it is you want to live.

Now What?

If you have gone through all of the above steps, you are probably wondering what's next. Well, the answer is quite simple. You are now ready to make a deal that works best for your home buying situation. Although you are excited to get into a new home, you should proceed with caution if you still own a home. Here is a look at two different options that can make the processing of selling your home while buying a new one less of a hassle.

Contingencies

A contingency is an agreement that is requested by a buyer in order to provide him or her with protection during the deal making process. Buyers who are simultaneously selling their current home could benefit from a contingency that allows them to move their things into the new property before closing. Don't think there's nothing in it for the seller. Contingencies are often included in real estate deals because they provide the buyer with confidence, thus raising the chances of selling your home at market value.

Temporary Housing

Those who are juggling the purchase of a new home and the selling of their current one are also given the option of looking for temporary housing in order to avoid having to demand an early move-in contingency. As a matter of fact, moving into a rental or moving in with a family member could allow you to hold out for a better deal. This is because you can let your property sit on the market a bit while still being able to shop around for a new place to call home.

Selling your home while buying a new one can be tricky at times, which is why it's always a good idea to seek the advice of a professional. Depending on where you are planning to move, your agency might even be able to handle the sale of your home and the purchase of a new one. If you have any questions or concerns, you should always address them with your agent before making any big decisions.

Your lender will also be able to inform you if you happen to qualify for a bridge loan that could make things easier, so make sure you give your broker a call as well. Some bridge loans will seem appealing but many of them could put you in a tight bind. This is because most bridge loans carry high upfront payments and higher interest rates.

Whatever you do, don't take out one of these loans before consulting with your agent. If anything, he or she will at least be able to provide moral support as you make some of the hardest financial decisions in the role of both the seller and the buyer.